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This is a lecture for students of entrepreneurship elective at the Ateneo Graduate School of Business. It has been uploaded slideshare for the convenience and access of present and former students for the said elective.This will update the former students on the latest in entrepreneurship. The ppt also talks about a new revolution - the entrepreneurial revolution. This perhaps is in consonance with quote from Jefferson that every age needs a revolution. The presentation is essentially Drucker, the management guru for the 20th century
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Innovation and Entrepreneurship
Agsb entrepreneurship elective lecture
Book by Peter Drucker, management guru
Peter Drucker
Definitions
• Entrepreneurship – “shift of economic resources out of an area of lower to higher productivity of greater yield.” J. B. Say 1800
• Innovation – “creating value out of existing
resources.” A specific tool of entrepreneurship.
They go hand in hand!
Innovation & Entrepreneurship
Entrepreneurship
NEW VALUE FROM EXISTING
• Entrepreneurship – “destroying old order and creating something new.” Schumpeter
• Innovation – innovare to make new
- creating value from existing things
processes
- not just new things; they have to be
NEW VALUE
Types of innovation
• Technical
• Social
• Economic
Most innovations are social and economic. THEY HAVE THE MOST IMPACT!
Social innovations
• Textbooks• Hospitals• Management• Organizations• Universities• Night/adult schools
Technological Innovations
Review
• Creativity
• Innovation
• Inventor
• Entrepreneur
Who was Edison?
Is innovation only for small businesses?
Characteristics of innovation
• It is hard work
• It is systematic
• It focuses on opportunities; not problems
• It is focussed
• It is customer-centric
• Its effect is felt in the economy and society
Practices of innovative companies
1. Responsibility for innovation
2. Rewarding innovators
3. “Hiving off” – divisionalisation
4. Changing corporate rules to nurture
innovation
Skunk works at Lockheed
3M
3m products
R & D
Johnson & Johnson
R & D
R & D
Innovation Strategies
1.“The Fustest with the Mostest”
Original innovations
At the Lead Pack..
Example companies
Original innovators
2. Creative imitators
“Not the orig..”
“Wheel suckers?”
Examples
• IBM
• J &J
• Seiko
• National
• Swatch
Battle of the watches
3. Creating main value propositions
Business model
How does a company earn? – business model
MVP
1. Utility to the customer
2. Price
3. Customer’s reality
4. True value
Innovation policies in nations
WHAT WILL NOT WORK:
• CENTRAL PLANNING
• RELYING ON TECHNOLOGICAL INNOVATION ONLY
Communist Party approving a central dev’t plan
What will work?
CREATIVE DESTRUCTION OF THE OBSOLETE:
• New tax laws that will favor sale of non – performing assets.
• Sunset laws for obsolete gov’t agencies.
“Every generation needs a revolution”
-Thomas Jefferson
French Revolution
Entrepreneurial Revolution?
Another revolution in Egypt –entrepreneurial revolution
Vernuft wind Unsinn,Wohltat Plage“Reason becomes nonsense, Boons
afflictions”
Goethe
Obsolescence
Old Manila
The new gets old
Thank you!
Profjorge.entrep@gmail.com
acknowledgement
• The picture and photographs are from Google images;
• The bulk of the presentation are interpretation of the work of Peter Drucker’s book on innovation and entrepreneurship. (creative innovation?)
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